Oil prices stabilized after the cartel of major exporters and their allies reiterated their intention to stick to their production cut targets, rather than increasing production to make up for any shortfall in Russian supplies.
Brent, the international benchmark, gained 0.2% on Tuesday to trade at $87.66. West Texas Intermediate, the US marker, rose 0.01% to $80.07.
Saudi Arabia reiterated on Monday that the OPEC+ group, which includes the cartel and allies such as Russia, would stick to its October decision to cut production targets by 2 million barrels per day.
The kingdom’s comments came on the heels of a Wall Street Journal report that the OPEC oil-producing group of nations could increase supply by up to 500,000 barrels a day. Such a move would have mitigated a potential shortfall once an EU embargo on Russian oil shipments takes effect in early December.
The report, since denied, caused a drop of up to 6% in each benchmark on Monday.
In stock markets, the regional Stoxx Europe 600 gained 0.2% in early trading and London’s FTSE gained 0.6%. Contracts that track Wall Street’s S&P 500 and the tech-heavy Nasdaq 100 fell 0.1% ahead of the New York open.
Hong Kong’s Hang Seng index fell 1.2%, while China’s CSI 300 was flat, Japan’s Topix rose 1.2% and South Korea’s Kospi lost 0.6%.
The dollar edged up 1% against a basket of six peers over the past week, reducing its November decline to 3.6%.
In government bond markets, the two-year Treasury yield, which is particularly sensitive to interest rate expectations, fell 0.02 percentage points to 4.5%. The benchmark 10-year Treasury yield slipped 0.02 percentage points to 3.8%. Yields fall as prices rise.